Core Knowledge Flashcards
Types of business ownership
Sole trader
PLC
Ltd
Partnership
Porters generic strategy
Cost leadership/focus
Differentiation leadership/focus
Ways of differentiation
Ethics Quality raw material Quality of manufacture Brand Unique product Brand awareness
Causes change in income
Unemployment Inflation Wages Interest rates Taxes
Causes price elasticity
Lower quality materials
New competition
Bad publicity
Customer service
Marketing mix
Product
Price
Place
Promotion
Marketing mix: products
Boston matrix
R and D
Life cycle
Marketing mix: place
Distribution channels
Intermediaries
Income statement
Revenue Cost of sales Gross profit Fixed costs Operating profit Exceptional Tax Net profit Dividends Retained
Balance Sheet
Non current assets Current assets Total assets Non current liabilities Current liability Total liabilities Net assets Shareholders equity Total equity
Capacity utilisation chain
Use for sales increases
Increased sales
Increased capacity utilisation
Fixed costs spread
Lower cost per unit
Economic variables
Inflation
Interest rates
Unemployment
High interest rates…
Increased mortgage
Less spending on luxuries
Due to reduced income after expenses
Is company inferior or superior
Low interest rates…
Cheap to borrow money High demand for luxury goods More incentive to spend More luxury goods bought Spend less on mortgage Higher disposable income More luxury
